South Korea Shares Likely To Remain Rangebound

(RTTNews) - The South Korea stock market has moved lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 60 points or 2.4 percent. The KOSPI now sits just above the 2,600-point plateau and it's expected to hold steady in that neighborhood again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on the outlook for trade. The European and U.S. markets were slightly higher and the Asian bourses figure to follow that lead.

The KOSPI finished modestly lower on Monday following losses from the technology and industrial stocks, while the financials offered support and the chemical companies were mixed.

For the day, the index dropped 23.45 points or 0.89 percent to finish at 2,603.42 after trading between 2,593.44 and 2,619.43. Volume was 309.7 million shares worth 6.69 trillion won. There were 642 decliners and 240 gainers.

Among the actives, Shinhan Financial collected 0.58 percent, while KB Financial strengthened 1.50 percent, Hana Financial added 0.61 percent, Samsung Electronics tumbled 1.76 percent, Samsung SDI rallied 2.85 percent, LG Electronics declined 1.40 percent, SK Hynix tanked 2.49 percent, Naver declined 1.28 percent, LG Chem jumped 1.14 percent, Lotte Chemical skidded 1.03 percent, SK Innovation rose 0.34 percent, POSCO Holdings sank 0.81 percent, SK Telecom surrendered 1.92 percent, KEPCO improved 1.43 percent, Hyundai Mobis dropped 2.16 percent, Hyundai Motor retreated 1.44 percent and Kia Motors shed 0.54 percent.

The lead from Wall Street is slightly positive as the major averages spent most of Monday in the red before a late pushed them up and barely over the unchanged line.

The Dow climbed 137.33 points or 0.32 percent to finish at 42,792.07, while the NASDAQ rose 4.36 points or 0.02 percent to close at 19,215.46 and the S&P 500 perked 5.22 points or 0.09 percent to end at 5,963.60.

The initial weakness on Wall Street came in reaction to news that Moody's has downgraded the U.S. debt rating by a notch to Aa1 from Aaa.

Selling pressure waned over the course of the session, however, as traders seem to remain generally optimistic about the outlook for the markets.

On the U.S. economic front, the Conference Board released a report showing its reading on leading U.S. economic indicators slumped by more than expected in the month of April.

Crude oil prices saw mild upside on Monday after Goldman Sachs raised its outlook for demand. West Texas Intermediate crude for June delivery rose $0.17 of 0.27 percent to $62.66 per barrel.